Proper Asset Allocation

A client is 40 years old and has a moderate risk tolerance. She has $500,000 to invest and a 20-year time horizon. Which of the following asset allocations best aligns with her risk tolerance and time frame?

1. 80% equities, 20% bonds
2. 60% equities, 35% bonds, 5% cash
3. 50% equities, 50% bonds
4. 90% equities, 10% cash